World Trade Organization sides with US in car trade dispute with China over export subsidies
GENEVA - The United States claimed victory in a trade dispute Friday after a key panel ruled that China's anti-dumping duties on imports of American-made cars and sport-utility vehicles violate international trade rules.
The World Trade Organization dispute panel sided with the United States in its ruling, saying that China acted "inconsistently" with the anti-dumping requirements, in violation of its WTO commitments.
The Geneva-based international trade body allows countries to raise import duties to offset improper subsidies and dumping. But complaints filed by Washington in 2012 accused Beijing of improperly imposing anti-dumping duties on American-made autos worth $3 billion.
China had defended the duties on U.S.-made vehicles as legal under international rules. The duties affect cars and SUVs with engine capacity of 2.5 litres or larger.
The dispute panel said China "erred in its determination of the residual anti-dumping and countervailing duty rates for unknown exporters of the subject product" and failed to disclose, as it was required, some of the information on which its decision was based. But it rejected a U.S. claim that China hadn't properly defined its domestic auto industry.
China was told to conform to the trade rules.
U.S. Trade Representative Michael Froman said the dispute affects U.S. auto manufacturers and nearly 850,000 automotive industry workers around the country. In 2013, the U.S. exported $64.9 billion of autos, of which $8.5 billion, or 13 per cent, went to China.
He said China's unjustified duties, which ranged up to 21.5 per cent, affected an estimated $5.1 billion worth of U.S. auto exports in 2013.
Read more Business News
- Parachutist hits houseVernon / N. Okanagan - 6:47 pm
- Boonstock liquor decision finalPenticton / S. Okanagan - 7:00 pm
- Disaster relief from stormKamloops - 6:34 pm
- Movie set burned in firePenticton / S. Okanagan - 6:30 pm
|QHR Technologies Inc||1.15||0.00|
|Anavex Life Sciences||0.265||-0.01|
|Copper Mountain Mining||2.97||+0.15|
|Sunrise Resources Ltd||0.02||-0.03|
|Mission Ready Services||0.19||+0.01|
Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...
The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...
The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...